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Tax planning


Tax planning is the process of forecasting one's tax liability and formulating ways to reduce it.


Tax planning entails creating portfolios or circumstances that are as tax efficient as possible. This requires investors and companies to give consideration not just to the size of their incomes or profits, but also to the nature and timing of purchases, insurance coverage and the types of investments they make. These decisions affect everything from which tax bracket an investor is in to the types of tax deductions the investor qualifies for.

Tax planning is one reason investments such as Individual Retirement Accounts (IRAs) are so important to many people who are saving for retirement. Assets in a traditional IRA can grow tax-free while the assets remain in the account. So, for example, if John's IRA is invested in Company XYZ stock and Company XYZ stock pays $1,000 in dividends, John does not have to pay the dividend tax that investors who held Company XYZ outside of an IRA would likely have to pay. And because he doesn't have to take money out of the account to pay those taxes, that leftover money is now able to keep growing.

Tax Planning in India for Businesses

The business tax planning services in India are provided for companies and organizations as well as corporate professionals. Normally, as part of these services, the clients are assigned chartered accountants on an exclusive basis.

These CAs deal with the business houses through e-mail and telephone and help them with their all their tax planning and compliance related requirements. They are also helped regarding their tax compliance, planning, and accounting requirements.

The clients can contact the chartered accountants as per their convenience. These plans are mostly available for one year each. These packages provide the following benefits.

  • Latest corporate tax planning software.
  • Rectification filing of ITRs if there are errors in the original entries done by the users.
  • Phone based support for dealing with the queries of the clients.
  • Reminder notifications through SMSs.
  • Questions regarding corporate tax planning are answered through e-mails.